POLICY REAFFIRMED ON CREDIT CONTROL

Press, Volume CV, Issue 31057, 12 May 1966, Page 22

POLICY REAFFIRMED ON CREDIT CONTROL

(New Zealand Press Association) WELLINGTON, May 11. The Labour Party conference today reaffirmed its present policy on the control of credit creation by the Reserve Bank, and wants a Labour Government to introduce and implement any additional legislation necessary.

The conference’s finance committee amended a remit which asked for the Reserve Bank to create the credit and advance it to trading banks at nominal interest rates. The committee convener (Mr N. J. King), said the Labour Party was deeply con-

cerned at the increase in interest rates and the inflationary spiral. It had been said previously that consistent with the needs of a sound economy under a Labour Government the State would create credit at cost for capital development.

Mr King said the original remit was restrictive.

“When we are the Government we should have the authority to govern, and take the responsibility for it.” Approval was given to a recommendation that New Zealand not indulge in unnecessary borrowing.

The conference overwhelmingly rejected a remit which would have restricted borrowing from the United States. Mr King said that New Zealand under a Labour Government would not be under the domination of the United States or any other country.

The conference recommended that the right of withdrawal by cheque be extended on an agreed basis to post office and trustee savings banks depositors, and that methods of streamlining withdrawal order systems be examined. It was also decided to ask that the “giro” or postal clearing system be introduced.